Timm Thaler is poor, but he laughs a lot, and often. His laughter is so charming and contagious that the diabolical Baron Lefuet wants, at all costs, to have it for himself. And so the world's richest man makes the boy a dubious offer: if Timm agrees to sell him his laugh, he'll win every bet he ever makes in the future. After hesitating at first, Timm signs the contract. But though he can now seemingly fulfill his every wish, without his laugh, he is a different person. Of all of Timm's friends, only Ida and Kreschimir continue to stick with him. Together they hope to rescue Timm from the clutches of the baron and, through a clever trick, win back his his inimitable laugh.